Sharewatch: Pearson Falls On Mixed Results

Week on week analysis of the media sector saw Pearson in focus, down 0.42% after declaring that advertising spend ‘deteriorated significantly’ over the last month (see FT Ad Revenue Drops 18% In Twelve Months, Says Pearson).

Elsewhere, Telewest experienced the sector’s biggest loss, with shares slipping 11.11% week on week. News that former chief executive, Adam Singer, picked up £1.79 million when he was ousted, has done little to cheer investors and has helped to place the levels of executive pay in the spotlight once more (see Telewest Chief Executive Removed In ‘Boardroom Coup’).

The week was dominated by concerns over the Sars crisis, which analysts are linking to a possible global recession. WPP’s chief executive, Sir Martin Sorrell. has warned the disease could kill off recovery in the beleaguered advertising market. The stock was seen up 7.50% week on week (see WPP Sees Weak UK Revenues, But Improving Outlook).

Investors will today consider reports that advertising group Cordiant may suspend trading after it lost key client, Allied Domecq, prompting a huge decline in its share price.

The closing prices of media company shares on Friday were: